When performing a directory synchronization with the merge with existing contacts option selected on the synchronization properties, objects are displayed on the conflict report and errors are displayed on the failed report, as follows:
The conflict reports shows "conflict by attribute .... name".
The failed report displays "LDAP error 0X44. Already Exists (00002071:UpdErr:DSID-030502F7, problem 6005 (ENTRY_EXISTS),data 0)"
A workaround to this issue is to simply place the contacts you wish to merge with into a different OU from the destination you have selected within the synchronization properties, thus eliminating the naming conflict upon user object creation.